see topic. Seems like a lot of guys talking up their book and being especially obnoxious about it. Some of it is just hilarious (e.g. can you go from H&F, one of the most selective seats in all of finance, to MM HF after) - WTF? Another was comparing BX PE/Lone pine to a big 4 MM - even more WTF? Half of it feels like a psyop because its so ridiculous
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Peak pod shop era coming out of 2022 and all the kids on bottom / average quartile teams at those pod shops need to feel better about their roles. I 100% agree that the top teams at pod shops are amazing seats but they never open up.
From my personal experience, I’ve interviewed for 5-7 teams at MM firms and received 2 offers. I ultimately declined both a couple of years but looking at LinkedIn, almost all of the teams are no longer at the respective firms. You could get screwed in so many ways as a junior investment professional (PM or Analyst gets fired, PM or Analyst gets another guarantee and can’t take you, division gets shutdown like BHS or Aptigon, etc.). There is a reason why turnover is so high and people just bounce around from team to team until they eventually burn out.
Separately, I just don’t understand why people think this can be extrapolated forever. This is capitalism. Capital flows into attractive products and decrease returns going forward. There have been 10+ billion dollar MM launches in the past couple of years while the big 4 have taken in multiple billions in net flows. There are also multiple launches planned in 2023-2024 so in what world, does this feel like a sustainable business model? How does this not look like a massive bubble with LPs chasing performance as always and getting burned?
The amount of people trying to feel better about the chip on their shoulders by taking any chance to pump up pod shops has been ridiculous. It reminds me of all those RBC is a BB threads
Amen - godspeed with your career choice
Wouldn’t be surprised if some of it is coming from pod shop hr/recruitment teams, especially some of the more blatantly pro pod accounts
Fact is, MMHFs are currently more aggressive and paying up for talent than others. As you mentioned it they took in billions and are out paying for talent.
"Can I go from H&F to MMHF" = "I know someone who paid stupid money to join a pod as a sector specialist who worked at MF PE for 2-3 years".
"Comparing BX PE to MMHF" = "A recruiter told me, some pod will pay me all my deferred comp and 120% of base today, up front to join".
Yes it is a ridiculous psyop to out pay for top talent versus SM/PE who offer possibly a safer seat long-term but less cash today. Especially since these MMHFs have no issues paying you today and turfing you in 2 years as mentioned.
I think its a few things, in order of importance:
-MM performance has been very good, and they are hiring aggressively. They are the majority of new seats available and you can only get a job at a place that is hiring.
-SM performance has been weak, leading to many large SMs under their HWM and investors pulling back further. Less seats are available relative to the even recent past.
-MM have gotten better at retaining analysts by finding a new pod if you blow up, etc. The reputation has gotten somewhat better.
-MM have scale and capital. You cant generate returns/make $ if you don’t have real capital. SM are struggling to raise money outside of some high profile Lone Pine type spins.
Pod shops are ultimately excellent human resources businesses that do a fuck ton of marketing, especially recently to college kids who tend to eat up whatever they're presented and vomit it back out on these forums.
You guys sure are sensitive
+1
being upset about random shitposting on a forum means it's getting under your skin some how, some way in this prestige rat race - terrible temperament to have in public markets
And this is why I don’t hire BX PE or equivalent guys. 10/10 ego and average alpha potential.
If you translate that BX PE resume to Tiger or Lone Pine, great - cushy job with prestige.
If you’re the 90% of that group that don’t get the elusive Tiger or Lone Pine seat, good luck sustaining that ego and best of luck generating alpha knife fighting in the public markets with that kind of false sense of entitlement and arrogance.
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